Focus fund - Asia: the future of equity income

The Asia-Pacific region, well-known for its capital growth potential, has also firmly embraced the dividend culture. We believe the time has come to recognise Asia's ability to deliver not only capital growth, but also the combination of high and growing dividends favoured by traditional UK equity income investors. The emergence of Asia as a serious long-term alternative to the UK is timely given the source of most UK dividends has become increasingly restricted to a small number of stocks and sectors.

About the fund manager

Mike Kerley has more than 15 years' experience managing money within Asia-Pacific and emerging markets. He is supported by Henderson's sizeable Pan Asian Equity Team, with fund managers based in London, Singapore and Tokyo managing more than £2.5 billion† in assets. Mike has considerable experience of sophisticated fund management techniques including the use of derivatives for investment purposes as well as efficient portfolio management. Mike also manages the Henderson Horizon Asian Dividend Income Fund (SICAV) and the Henderson Far East Income investment trust. †Source: Henderson Global Investors at 30 September 2009 (including Japan).

Key reasons to invest

• An income focused fund, managed with a 'total return' investment strategy
• Exposure to the fast-growing economies of Asia, including China, Hong Kong, Singapore and Taiwan
• Although the fund objective is to pay an above market rate dividend yield, the manager also looks to fully participate in the pursuit of dividend and capital growth
• The fund currently pays a historic net yield of 3.4%*. However, based on Bloomberg projections, had the current fund positions been held over the previous 12 months, the estimated historic yield for investors would be 4.3%***
• UCITS III sophisticated investment tools, including derivatives, are used to enhance income
• Fund manager Mike Kerley currently manages more than £450 million** using the same strategy across a number of different income-focused investment vehicles
• Henderson Global Investors is one of the first UK-based investment houses to recognise the long-term potential of Asia as a serious alternative for traditional investors in UK equity income funds

Next steps

To find out more about this fund and why we believe Asia is the future for equity income please call 0800 83 28 32 or email support@henderson.com

Past performance is not a guide to future performance. Due to exposure to overseas companies the value of an investment and the income from it can fall as well as rise as a result of market and currency fluctuations and you may not get back the amount originally invested. *This yield is based on historic dividend data for the portfolio as at 31 December 2009. It is net of estimated tax and expenses. It is not guaranteed. We are using an estimated yield because of the changes to the investment objective made in November. As a result of the portfolio changes we believe the historic yield generated on the previous portfolio is no longer reflective of the new portfolio. We will revert to the standard yield calculation once there is sufficient historic data (est in 6-12 months time). ***Source: Bloomberg, estimated historic yield based on period 31 December 2008 - 31 December 2009. **Source: Henderson Global Investors at 31 December 2009.